Order: 2013-2-24

 Served: February 25, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25th of February, 2013

Essential Air Service at

JONESBORO, ARKANSAS

under 49 U.S.C. 41731 et seq.

 Docket DOT-OST-1997-2935

ORDER EXTENDING SERVICE PERIOD

Summary

By this Order, the Department is extending the service period for Multi-Aero, Inc. d/b/a Air 

Choice One (Air Choice One) to provide subsidized Essential Air Service (EAS) at Jonesboro, 

Arkansas, for a one-year period, from March 1, 2013, through February 28, 2014.1 Air Choice 

One will continue to provide Jonesboro with 18 nonstop round trips per week to Lambert-St. 

Louis International Airport (St. Louis) using 9-passenger Cessna Grand Caravan aircraft, at an 

annual subsidy rate of $1,717,781.

Background

By Order 2011-12-14 (December 22, 2011), the Department selected Air Choice One to provide

18 nonstop round trips per week from Jonesboro to St. Louis using a 9-passenger Cessna Grand 

Caravan, for one year beginning when the carrier inaugurated service through the end of the 12th

month thereafter, at an annual subsidy rate of $1,717,781. Air Choice One inaugurated service at 

Jonesboro on February 13, 2012, thus setting an expiration date of February 28, 2013.

Public Law 112-27, signed into law on August 5, 2011, amended the definition of “eligible 

place” for the purpose of receiving EAS. See 49 U.S.C. § 41731. That amendment stated that to 

be eligible, a community must be located not less than 90 miles from the nearest medium or large 

hub airport and must have had an average subsidy per passenger of less than $1,000, regardless 

 1 Subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds.
of isolation, during the most recent fiscal year, as determined by the Secretary of Transportation.

Section 41731, as amended, also granted the Secretary the authority to issue a waiver of the 90-

mile criterion if the Secretary determines that the “geographic characteristics of the location 

result in undue difficulty in accessing the nearest medium or large hub airport.” 49 U.S.C. § 

41731(d). At the time when that amendment was in effect, the Department was deciding on a 

long-term carrier selection at Jonesboro. Because Jonesboro is only about 82 miles from 

Memphis International Airport (MEM), a medium hub, Jonesboro’s eligibility to received 

subsidized EAS was affected by the amendment.

Subsequently, The Federal Aviation Administration (FAA) Modernization and Reform Act of 

2012 (Public Law 112-95), signed into law February 14, 2012, made amendments to the EAS 

statute, including the removal of the 90-mile restriction, but not the $1,000 per passenger cap. At 

the time, the Department was preparing a Notice of Proposed Rulemaking regarding the new 

waiver provisions under 49 U.S.C. § 41731, and Jonesboro could have been affected. As a 

result, Air Choice One was selected to serve Jonesboro for only a one-year period, rather than a 

typical two-year period.

Legislative Changes Which May Affect Future EAS Eligibility at Jonesboro

Public Law 112-95 amended 49 U.S.C. § 41731(a)(1)(B) to change the definition of “eligible 

place” for the purpose of receiving EAS. The amendment states that to be eligible, a community 

must maintain an average of 10 enplanements or more per service day, as determined by the 

Secretary, during the most recent fiscal year beginning after September 30, 2012.2 The 

legislation exempts locations in Alaska and Hawaii and communities that are more than 175 

driving miles from the nearest large or medium hub airport. Jonesboro must meet the

10-enplanement-a-day threshold for EAS to continue after FY2013 or otherwise face termination 

of its eligibility to receive EAS, barring a waiver from the Secretary. 

In the most recent fiscal year for which data are available, FY2012 (October 2011-September 

2012), Jonesboro generated a total of 7,034 passengers (inbound and outbound), or an average of 

11.2 enplanements per day.3 The community and carrier will need to continue to attract enough 

passengers to meet the 10 enplanements per day statutory requirement in order for Jonesboro to 

remain eligible to continue receiving EAS after FY2013. The Department will continue to 

monitor Jonesboro’s eligibility to receive EAS in the light of these new requirements throughout 

the life of any executed contract. The Department may cancel a contract for any community 

receiving EAS if enplanements remain below an average of 10 per day during FY2013.

Decision

Because Jonesboro’s continued eligibility was in flux at the time of the carrier-selection Order in 

December 2011, and because Air Choice One and the community have significantly increased 

passenger usage since the carrier inaugurated service, we will extend Air Choice One’s service 

 2 The Secretary also has authority to waive the 10-passenger requirement, on an annual basis, if the community can 

demonstrate that the reason the location averages fewer than 10 passengers per day is due to a temporary decline in 

enplanements. See 49 U.S.C. § 41731(e). A detailed explanation of the temporary decline would have to be 

submitted to the Department with relevant supporting documents.

3 Source: Bureau of Transportation Statistics; Form 41, Schedule T-100. Daily averages are based on one-half of the 

O&D passengers, divided by 313 service days (314 during leap years).
period for an additional 12 months, through February 28, 2014. We will set the rate for this 

second year, at an annual subsidy of $1,717,781, as described in Air Choice One’s original 

proposal of a year ago.4

Later this year, using FY2013 passenger data, the Department will evaluate the 10 enplanementper-day threshold and take appropriate action at that time regarding Jonesboro’s continued 

eligibility in the EAS program. We note that Air Choice One projected 4,700 passengers 

annually using its Jonesboro service, which is lower than 10-enplanement threshold. However, 

the carrier exceeded that projection by a significant margin and is on track for over 10,0005

passengers annually to utilize the service.

In light of the eligibility criteria that Jonesboro must meet in order to maintain its subsidized air 

service, we urge Air Choice One and the community to continue to maximize use of the service

awarded under this Order to the greatest extent possible in order to avoid termination from the 

EAS program.6

This Order is issued under authority delegated in 49 CFR Part 1.56a(f).

ACCORDINGLY,

1. We select Multi-Aero, Inc. d/b/a Air Choice One, to provide Essential Air Service at 

Jonesboro, Arkansas; for additional 12 months, from March 1, 2013, through February 28, 2014;

2. We set the final rate of compensation for Multi-Aero, Inc. d/b/a Air Choice One, for the 

provision of Essential Air Service at Jonesboro, Arkansas, as described in Appendix D;

3. The Department directs Multi-Aero, Inc. d/b/a Air Choice One to retain all books, records, 

and other source and summary documentation to support claims for payment, and to preserve 

and maintain such documentation in a manner that readily permits its audit and examination by 

representatives of the Department. Such documentation shall be retained for seven years from 

when EAS begins or until the Department indicates that the records may be destroyed, whichever 

comes first. Copies of flight logs for aircraft sold or disposed of must be retained. The carrier 

may forfeit its compensation for any claim that is not supported under the terms of this Order;

4. This docket will remain open until further order of the Department; and

 4 See Appendix C. Air Choice One’s full proposal may be accessed at www.regulations.gov using “DOT-OST1997-2935” in the search field.

5 Estimated number of enplanements and deplanements based on 8 full months of Air Choice One’s service (6,948 

passengers divided by 8 multiplied by 12)

6 In addition, the Department is prohibited from subsidizing air service at a community where the subsidy per 

passenger exceeds $200, unless the community is more than 210 highway miles from the nearest large or medium 

hub airport, which is not the case with Jonesboro. Congress first established the $200 ceiling under P.L. 101-164 for 

fiscal year 1990, and reestablished it in fiscal years 1994-1999. The ceiling was made permanent by P.L. 106-69,

the Department of Transportation and Related Agencies Appropriations Act of 2000.
5. We will serve copies of this Order on the Mayor of Jonesboro, the Airport Manager of 

Jonesboro Municipal Airport, and Multi-Aero, Inc. d/b/a Air Choice One.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Appendix A

AREA MAP

This map is provided by Planet Profitability Forecasting System and is being used with express permission of the 

copyright holder, Sabre Airline Solutions®.
Appendix B

Jonesboro, AR (JBR)

Passenger traffic

Year Month Carrier Inbound pax Outbound pax Totals

2010 1 SeaPort Airlines, Inc. 24 37 61

2010 2 SeaPort Airlines, Inc. 19 38 57

2010 3 SeaPort Airlines, Inc. 28 45 73

2010 4 SeaPort Airlines, Inc. 28 36 64

2010 5 SeaPort Airlines, Inc. 36 37 73

2010 6 SeaPort Airlines, Inc. 36 38 74

2010 7 SeaPort Airlines, Inc. 29 43 72

2010 8 SeaPort Airlines, Inc. 34 33 67

2010 9 SeaPort Airlines, Inc. 65 58 123

2010 10 SeaPort Airlines, Inc. 39 40 79

2010 11 SeaPort Airlines, Inc. 36 61 97

2010 12 SeaPort Airlines, Inc. 51 49 100

2011 1 SeaPort Airlines, Inc. 43 30 73

2011 2 SeaPort Airlines, Inc. 42 52 94

2011 3 SeaPort Airlines, Inc. 64 78 142

2011 4 SeaPort Airlines, Inc. 69 81 150

2011 5 SeaPort Airlines, Inc. 101 133 234

2011 6 SeaPort Airlines, Inc. 110 110 220

2011 7 SeaPort Airlines, Inc. 107 132 239

2011 8 SeaPort Airlines, Inc. 93 104 197

2011 9 SeaPort Airlines, Inc. 89 80 169

2011 10 SeaPort Airlines, Inc. 63 80 143

2011 11 SeaPort Airlines, Inc. 247 234 481

2011 12 SeaPort Airlines, Inc. 28 47 75

2012 1 SeaPort Airlines, Inc. 34 25 59

2012 2 SeaPort Airlines, Inc. 13 10 23

2012 2 Multi-Aero, Inc. d/b/a Air Choice One 127 122 249

2012 3 Multi-Aero, Inc. d/b/a Air Choice One 340 351 691

2012 4 Multi-Aero, Inc. d/b/a Air Choice One 328 364 692

2012 5 Multi-Aero, Inc. d/b/a Air Choice One 430 447 877

2012 6 Multi-Aero, Inc. d/b/a Air Choice One 398 465 863

2012 7 Multi-Aero, Inc. d/b/a Air Choice One 522 560 1,082

2012 8 Multi-Aero, Inc. d/b/a Air Choice One 487 543 1,030

2012 9 Multi-Aero, Inc. d/b/a Air Choice One 349 420 769

2012 10 Multi-Aero, Inc. d/b/a Air Choice One 476 468 944

7,835

7,034

10,422

Passenger traffic (last 12 months; Nov2011-Oct2012)

FY2012 traffic (Oct2011-Sep2012)

Annualized traffic (one full year of Air Choice One's service)

Source: USDOT Bureau of Transportation Statistics, TranStats Intermodal Database, Schedule T-100.
Appendix C
Appendix D

Multi-Aero, Inc. d/b/a Air Choice One

Essential Air Service to be provided at Jonesboro, Arkansas

Effective Period: March 1, 2013, through February 28, 2014

Scheduled Service: 3 nonstop round trips each weekday (Monday through Friday) and 3 nonstop 

round trips each weekend (18 total round trips per week) to Lambert-St. Louis International 

Airport (STL)

Aircraft: Cessna Grand Caravan, 9 seats

Rate per Eligible Flight1: $936

Weekly Ceiling2: $33,696

Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in 

conformance with the terms and stipulations of the rate Order, including the service plans outlined in the Order and 

any other significant elements of the required service, without prior approval. The carrier understands that an 

aircraft take-off and landing at its scheduled destination constitutes a completed flight; absent an explanation 

supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only 

completed flights are considered eligible for subsidy. In addition, if the carrier does not schedule or operate its 

flights in full conformance with the Order for a significant period, it may jeopardize its entire subsidy claim for the 

period in question. If the carrier contemplates any such changes beyond the scope of the Order during the applicable 

period of these rates, it must first notify the Office of Aviation Analysis in writing and receive written approval from 

the Department to be ensured of full compensation. Should circumstances warrant, the Department may locate and 

select a replacement carrier to provide service on these routes. The carrier must complete all flights that can be 

safely operated; flights that overfly points for lack of traffic will not be compensated. In determining whether 

subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extent to 

which the goals of the program are met and the extent of access to the national air transportation system provided to 

the community.

If the Department unilaterally, either partially or completely, terminates or reduces payments for service or changes 

service requirements at a specific location provided for under this Order, then, at the end of the period for which the 

Department does make payments in the stipulated amounts or at the stipulated service levels, the carrier may cease 

to provide service to that specific location without regard to any requirement for notice of such cessation. Those 

adjustments in the levels of subsidy and/or service that are mutually agreed to in writing by the Department and

carrier do not constitute a total or partial reduction or cessation of payment.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they 

may be amended from time to time. However, any such statutes, regulations, or amendments thereto shall not 

operate to controvert the foregoing paragraph.

Funds may not be available for performance under this Order beyond March 27, 2013. The Government’s 

obligation for performance under this Order beyond March 27, 2013, is subject to the availability of funds from 

which payment for services can be made. No legal liability on the part of the Government for any payment may 

arise for performance under this Order beyond March 27, 2013, until funds are made available to the Department for 

performance. If funds are not made available for performance beyond March 27, 2013, the Department will provide 

notice in writing to the carrier.

All claims for payment must be submitted within 60 days of the last day of service provided under this Order.

 1 Annual compensation of $1,717,781, divided by 1,835 annual departures (36 weekly departures x 52 weeks x 98 

percent completion)

2 36 flights per week multiplied by $936 per flight.